What is the short-run Phillips curve based on?

Question

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The short-run Phillips curve is based on labour contracts that reflect a given expected price level. It shows the inverse relationship between inflation and unemployment in the short run. With fixed wages and prices, as aggregate demand increases, firms must hire more workers, leading to lower unemployment but higher inflation. Conversely, if aggregate demand falls, unemployment rises but inflation falls. Thus, the Phillips curve suggests a trade-off between inflation and unemployment in the short run.

What Is the Short-Run Phillips Curve Based On